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As the broader cryptocurrency market shows signs of a bearish trend, Bitcoin remains resilient, staying above crucial support levels that were strong barriers just days ago. This renewed upward momentum in Bitcoin has sparked significant investor interest, leading to an increase in bullish positions. However, the outlook may not be entirely optimistic.
The Risks of Rising Bullish Sentiments on Bitcoin
Bitcoin’s long positions have surged following recent price gains, reflecting strong confidence in its future performance. According to Alphractal, a leading investment and on-chain data analysis platform, there has been a noticeable shift in sentiment among both institutional and retail investors.
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Over the past three months, major long positions have dominated cryptocurrency exchanges, pointing to a strong belief in the current trend and expectations of a further rally in the near future. While this trend is significant for Bitcoin’s current market dynamics, Alphractal cautions about a potential wave of liquidations. After the recent price increase and short position liquidations, holding long positions now could increase risk levels, the platform advised.
Alphractal highlights the risk of another wave of liquidations, as an overheated market and rising leverage often precede steep corrections. This situation raises concerns about Bitcoin’s price stability as it nears critical resistance points. So far, Alphractal encourages investors to exercise caution, take profits, adjust stop-loss orders, and manage risks prudently.
Following the recent uptrend, Bitcoin has also seen renewed interest from large-scale investors, or ‘whales,’ who continue to accumulate the cryptocurrency. On-chain analytics platform Glassnode reports that whale investors are actively accumulating Bitcoin, pushing the Accumulation Trend Score to positive levels.
The Accumulation Trend Score is a crucial metric that evaluates the consistency and intensity of large holder purchases. Since April, this metric has consistently remained positive, indicating strong buying pressure despite price volatility. Data shows that wallets holding at least 10,000 BTC have achieved an almost perfect accumulation score of 0.9. Moreover, wallets containing between 1,000 BTC and 10,000 BTC have increased their trend score to 0.7. Recently, even wallet addresses with 100 BTC to 1,000 BTC have moved towards accumulation, with their trend score rising to 0.5.
Bitcoin’s Price Indicates Bullish Patterns
In a recent post on X, crypto information platform Coin Signals predicted a significant move towards new all-time highs for Bitcoin in the coming weeks. This forecast is based on the appearance of a bullish Inverse Head and Shoulders pattern on the daily chart.
Initially, the expert noted that Bitcoin is unlikely to return to the $76,000 level, suggesting a future breakout. Based on the pattern, Bitcoin’s price could reach a new all-time high, potentially retracing to the $92,600 level to form the right shoulder. Following this correction, Coin Signals anticipates a substantial breakout, potentially driving Bitcoin’s price to $140,000 by July.
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